1. Tally
( An accounting software package)
A Project by
“ Niraj
Choudhary ” .!
Niraj Choudhary.
2. A Brief History
• The late Shri SS.GOENKA, founder of the
company Peutronics Pvt. Ltd. set up tally
software business in 1986.
• His able monitoring of his son Bharat resulting
in the creation of the software that would simplify
the process of financial accounting and
inventory.
Niraj Choudhary.
3. INTRODUCTION
TALLY
• The undisputed king of all financial accounting packages
available in India.
• Capable of handling all kind of transaction.
• For Its use- neither need to learn new accounting methods nor
should change existing style of handling accounts.
• The information can be fed as well retrieved at random and all
human errors can be corrected.
• A post transaction system - follows the traditional methods of
accounting, that is, the payment is first made on the basis of
existing accounting methods (i.e., against a voucher or a cash
bill) and that information is fed into the Tally.
• Covers a wide area - can be used by the owner, financial
controller, accountant, manager or an auditor
• Is both accurate and convenient to use even if you are not well
versed with the accounting, you can still use and at the same
time become known to accounting methods
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4. VERSIONS OF TALLY
• 4.5 : DOS based, Accounts only.
• 5.4 : Window based accounts with inventory.
• 6.3 :
5.4 with online finalization,
auditing and import & export feature.
• 7.2 :
6.3 with VAT, TDS and service tax.
• 8.1 :
7.2 with FBT and excise duty.
• 9.0 :
8.1 with Payroll system, multi
language and extra formatting feature.
• ERP 9: Access Remote Server Login
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5. Other Features of Tally
• Excellent Backup Provisions
• Easy exit to operating system
• Unencrypted files: owner freely carry the data
in his person
• Based on solid accounting theories and
practices
• Mode of data exchange through extensible
markup language (XML)
• An exhaustive list Niraj Choudhary.
of fields
6. How to start Tally
• Double click on Tally icon which
present on Desktop.
OR
• Start – All programme – Tally
• Tally 7.2,
• Tally 9.0,
• Tally 9.4 &
• Tally ERP 9
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9. STEPS OF
TALLY ACCOUNTING
•
•
•
•
•
•
Create Company.
Master Creation :Ledgers and Voucher creation.
Transaction : Entry of Voucher.
Reports : Auto created by tally
Ex:-Balance Sheet, Profit & Loss A/c &
Other Day books &Trail balance,
• Import & Export : Data import & Export
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from excel to tally & one co. to another
10. Creating a new company
•
•
•
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Company Information
Menu
The right half of the
Gateway of Tally area
displays the company info.
Menu
This menu has following
three options:
· Select Company
· Create Company
· Quit
Creating a New Company
In order to create a new
company for accounting
following screen will
appear :
11. Fields
•
•
•
•
Niraj Pvt. Ltd.
•
•
•
•
•
•
•
•
Niraj Choudhary.
Name
Mailing name, address
Email address
Income tax number,
sales tax number
local/interstate)
Currency symbol
Maintain (accounts
only/inventory
only/both)
Financial year
Books beginning from
Tally vault password
Security control
Base currency
information
Accept/reject
12. Alteration : A created company’s detail can be
modified at a later time through keys Alt+[F3]
or choosing the Alter option from gateway of
tally. A company has been successfully created
with the above information
Niraj Pvt. Ltd.
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13. Setting up account heads
•
•
you have to setup an
accounting chart for the
company.
Creating Master Accounts
You can create master for both
accounts and inventory by
providing information regarding
both accounts and inventory.
We will start from creating
account masters.
Account Information
In order to work on the master
of accounts of a company, first
activate the desired company
then Gateway of Tally menu
appear on the screen
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17. GROUPS CREATION
• Group
During manual
accounting the accounts
(ledger) are grouped
upon preparation of Trial
Balance to prepare Profit
& Loss account and
Balance Sheet which
reflect the final accounts
of the company. In tally
the concept remains
analogous. Following
screen will appears when
you select Group option.
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18. Create Single Group
Park Street Branch
State Bank of Inida
State Bank of Inida
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Single
group
option is
useful
when you
wish to
work on
one group
at a time
19. Multiple group option : The sub group will
automatically adopt the features of their parent group
including those specified in advanced mode. if there
is any changes for an individual group to have to
select single group option.
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20. Stock Groups
•
Based on common feature, all
your stock items can be classified
into stock groups.
Stock Item
Stock items are the actual items in
stock. This is lowest level of
information about your inventory.
Each item that is required to be
accounted for, need to be created.
You can then account for the
issues and receipts of each item.
Voucher Types
This option allows you to create
additional voucher types or alter
the existing ones. The procedure
is exactly identical to the voucher
type functions that we discussed
in ‘Account Info.’ Menu.
Units of Measure
This option is used to specify the
various units of measure you use
Niraj Choudhary. specify the quantities of stock
to
items.
21. Ledgers
• Means you can create,
display, alter single and
multiple account groups.
¨ Ledger
The next option after
group in Account info
menu is Ledger
• In this menu you can
create, display and alter
single and multiple ledger
accounts.
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25. •
•
•
•
•
•
•
•
•
•
ADVANCE SALARY PAID:INPUT VAT:OUTPUT VAT:VAT PAYABLE:INTEREST ON LOAN:ACCRUED INTREST:BILLS RECEIVABLE :BILLS PAYABLE :TYPE – WRITERS MACHINE :DISCOUNTING OF BILL :-
LOAN & ADVANCE
DUTIES & TAXES
DUTIES & TAXES
CURRENT LIABILITY
INDIRECT EXPENSE
CURRENT ASSETS
CURRENT ASSETS
CURRENT LIABILITY
FIXED ASSETS
INDIRECT EXPENSES
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26. How to Pass the Voucher Entry
• GATE OF TALLY – ACCOUNTING
VOUCHER – ENTER.
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27. USE OF FUNCTIONAL KEY
• Different Functional key use for Company Info.
& Pass the Accounting voucher.
• F1
:- SELECT COMPANY
• ALT+F1
:- SHUT COMPANY
• F2
:- DATE
• ALT+F2
:- CHANGE PERIOD
• ALT+F3
:- CREATE COMPANY
• F4:- CONTRA
F5:- PAYMENT
• F6:- RECEIPT
F7:- JOURNAL
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• F8:- SALE
F9:- PURCHASE
28. •
•
•
•
•
•
•
•
•
•
ALT+F4 :- PURCHASE ORDER
ALT+F5 :- SALES ORDER
ALT+F7 :- TRANSFER OF MATERIAL
CTRL+F9 :- PURCHASE RETURN(Debit
Note)
CTRL+F8 :- SALE RETURN(Credit Note)
F10
:- REVERSING JOURNAL
CTRL+F10:- MEMO VOUCHER
ALT+F10 :- PHYSICAL STOCK
F11
:- FEATURES
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F12
:- CONFIGURATION
29. INVENTORY CREATION
•
•
•
•
•
•
Step for Inventory creation:1) Create Units
2) Create Godown
3) Create Stock Group
4) Create Stock Items.
GATEWAY OF TALLY – INVENTORY
FEATRURES – STOCK ITEM & THEIR UNIT .
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30. GODOWN CREATION
• FOR MAINTAINING OF GODOWN:GATEWAY OF TALLY–F11–(F2) INVENTORY
FEATURES –
MAINTAIN MULTIPLE GODOWN –YES.
FOR CREATE GODOWN:GATEWAY OF TALLY-INVENTORY INFO.GODOWN-CREATE-ENTER.
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31. CREATION OF
STOCK GROUP
FOR CREATE STOCK GROUP:GATEWAY OF TALLYINVENTORY INFO.STOCK GROUPCREATEENTER.
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32. CREATE ALTERNATE UNIT
FOR STOCK ITEM
GATEWAY OF TALLY–
INVENTORY INFO.STOCK ITEM –
CREATEPRESS F12USE ALTERNATE UNIT FOR A ITEM:-YES.
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33. ACTIVATE INTEREST CALCULATION
& SEPARATE DISCOUNT COLUMN
• FOR ACTIVATE INTEREST & SEPARATE
COLUMN FOR DISCOUNT:GATEWAY OF TALLY–F11–(F1)
ACCOUNTING FEATURES – ACTIVATE
INTEREST CALCULATION-YES.
&
AGAIN PRESS–(F2) INVENTORY FEATURES –
SEPARATE DISCOUNT COLUMN INVOICE –YES.
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34. COST CENTRES & COST
CATEGORIES
• FOR ENABLE AND MAINTAINING OF COST
CENTRES & COST CATEGORIES:AT FIRST GATEWAY OF TALLY–F11–(F1)
ACCOUNTING FEATURES –
1)MAINTAIN COST CENTRES –
YES.
2)MORE THAN ONE PAYROLL/COST
CATEGORIES –
YES.
• FOR CREATING:- Gateway of Tally-Account
info.-Cost Categories & Cost Centres.
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35. MANUFACTURING
ACCOUNTING
• The accounting cycle is the same in a manufacturing
company, merchandising company, and a service
company. Journal entries are used to record transactions,
adjusting journal entries are used to recognize costs and
revenues in the appropriate period, financial statements are
prepared, and closing entries are recorded. Raw material
purchases are recorded in the raw material inventory
account if the perpetual inventory method is used, or the
raw materials purchases account if the periodic inventory
method is used. For example, using the periodic inventory
method, the purchase of $750 of raw materials on account
is recorded as an increase (debit) to raw materials
purchases and an increase (credit) to accounts payable.
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36. STEPS FOR
MANUFACTURING ACCOUNTING
IN TALLY
• STEP 1:-
Create Stock Group
• STEP 2:-
Create Stock Items (Note:Before the creation of
Finished goods –Press F12
(Inventory Info)- YES option
of ALLOWED COMPANIES
LIST DETAILS (BILL OF
MATERIALS/BOM) – YES.
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37. •
•
•
•
•
•
•
•
•
STEP 3:-Production Formula:Which time creation of Finished Goods
NAME OF GOODS
:- COMPUTER
UNDER
:- FINISHED GOODS
UNIT
:- PCS.
SET COMPONENTS :- (BOM) YES.
THEN ONE POPUP MENE WILL COMEALWAYS PUT THE UNIT OF GOODS
-1
SELECT THE ALL RAW MATERIAL FROM
LIST AND PUT THE QUANITITY
-1
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38. • Bill of Material (BOM)
• Bill of Material (BoM) is created only for those
items that are being assembled in-house. For
trading items, you do not need a BOM.
• Therefore, you need to specify a
BoM at the time of creating a
Stock Item or when altering
its master.
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39. Tally’s Voucher Types
• Tally by default provides 18
types of predefined vouchers
are unable to fulfil
requirements then Tally also
gives you a provision to alter
these existing types according
to you need.
• They pertain to both
accounting and inventory.
• Some vouchers can be used
differently according to the
situation.
• Different vouchers are created
for data entry purpose.
• It can be customize as per the
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requirement.
40. After Creation of
Finished Goods we
have to create
MANUFACTURING
VOUCHER/JOURNAL
in Voucher Type.
GATE OF TALLY –
ACCOUNT INFO.VOUCHER TYPE- CREATEENTER.
VOUCHER NAMEMANUFACTURING
VOUCHER
TYPE OF
VOUCHER-
STOCK JOURNAL
&
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41. • Example :
• To assemble one Computer (P4), the following peripherals are
required..
•
•
•
•
•
•
•
•
Name of the Peripheral Quantity
Qty No.
Processor (P4)
1 Nos
Monitor
1 Nos
Motherboard
1 Nos
Hard Disk
1 Nos
Mouse
1 Nos
Keyboard
1 Nos
The company assembled 10 Computers with P4 configuration
using the peripherals listed in the table and stored the same in
the finished goods godown.
• Note 1 : Create a Manufacturing Journal under Stock Journal
by setting Use as Manufacturing Journal to YES.
42. • STEP 4:-PURCHASE THE RAW THE RAW
MATERIAL
Gateway of Tally-Accounting Voucher-F9
• STEP 5:- TO SEE THE STOCK REPORT
Gateway of Tally-Stock summery.
STEP 6:- Create Voucher Type &
STEP 7:- Pass the Manufacturing Voucher
44. • STEP 8:- IF PASS THE ENTRY FOR
TRANSFER OF MATERIAL.
Gateway of tally-Accounting Voucher-ALT+F7Voucher type box will come –select
STOCK JOURNAL.
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45. • STEP 9:- IF THE PASS ENTRY FOR
PHYSICAL STOCK.
• Physical Stock Voucher is used for recording the actual stock
which is verified or counted. It could happen that the Book
Stocks and the Physical Stock do not match. It is not unusual
that the company finds a discrepancy between actual stock and
computer stock figure.
• Physical vouchers will be useful for recording purposes only if
you have configured inventory vouchers to ignore physical
stock differences. If you have configured the vouchers so that
physical stock difference is not ignored, then all transactions
subsequent to the physical stock voucher will use the balance
as mentioned in that voucher.
47. :-NOTE:• IN TYPE ADDITION COST
CREATE AS TYPE OF
ELECTRIC CHARGE & OTHERS
EXPENDITURE AT TIME OF
MANUFACTURING THAT GO TO
HEAD UNDER DIRECT
EXPESES
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48. MEMORANDOM VOUCHER
• Memorandum Voucher
•
•
This is a non-accounting voucher and the entries made using memo voucher will not affect your
accounts. In other words, Tally.ERP 9 does not post these entries to ledgers, but stores them in
a separate Memorandum Register. You can alter and convert a Memo Voucher into a regular
voucher when you decide to bring the entry into your books.
Some of the uses of Memorandum Vouchers are:
• Making suspense payments
•
•
•
•
•
•
Consider that a company gives its employees cash to buy office supplies, the exact nature and
cost of which are unknown. For this transaction you can enter a voucher for the petty cash
advance, a voucher to record the actual expenditure details when they are known, and another
voucher to record the return of surplus cash.
However, a simpler way of doing it is to enter a Memo voucher when the cash is advanced, and
then turn it into a Payment voucher for the actual amount spent, when the details are known.
Consider the following Example:
The Company pays its employee Rs. 1000 as petty cash advance for Office Expenses.
The following entry has to be passed.
To use Memorandum voucher, Enable the following option from F11: Accounting
Features
• Use Reversing Journals & Optional Vouchers
50. CONVERT MEMO TO
PAYMENT MODE
• PRESS PAGE UP and WHICH
TIME MEMO VOUCHER WILL
COME THEN
• PRESS F5 FOR PAYEMNT
MODE AND SAVE IT.
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51. VAT (VALUE ADDED TAX)
•
•
A value added tax(VAT) is a form of consumption tax. From the
perspective of the buyer, it is a tax on the purchase price. From that of
the seller, it is a tax only on the "value added" to a product, material or
service, from an accounting view, by his stage of its manufacture or
distribution. The buyer remits to the government the difference
between these two amounts, and retains the rest for themselves to
offset the taxes he had previously paid on the inputs.
The "value added" to a product by a business is the sale price charged
to its customer, minus the cost of materials and other taxable inputs. A
VAT is like a sales tax in that ultimately only the end consumer is
taxed.[citation needed] It differs from the sales tax in that, with the latter, the tax is
collected and remitted to the government only once, at the point of
purchase by the end consumer. With the VAT, collections, remittances
to the government, and credits for taxes already paid occur each time a
business in the supply chain purchases products from another
business.
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52. Registration (VAT)
• All dealer already registered under the West
Bengal Sales tax act-1994 will be deemed.
• Dealers, not liable to pay tax under the VAT
is also eligible for getting registration
voluntarily. On receipt of above application,
the department will allot 11digit TIN (Tax
payer’s Identification Number)
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53. VAT RATES
• There are two basic Vat rates of 4% and
12.5%, 4% goods include all essential
commodities such as medicines and drugs, all
agricultural and industrial spare parts, IT
products on sale in west bengal. Major of
remaining taxable commodities will fall under
the general VAT rate @12.5%,its comes
schedule-A ((However, Gold, Silver, Stone &
Tea (sold through auction).covered under
schedule –B are subject to tax 1%.
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54. Special tax for Smaller Dealers
• A reseller, registered under the VAT
Act and engaged in buying and
selling goods only within West Bengal
having annual turnover of sales not
exceeding 50 lacs of rupees in the
preceding year may at his option to
pay tax at the compound rate of
0.25% of the entire turnover of sales.
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55. Required Ledger for VAT
•
•
•
•
•
•
•
Purchase @ 1%, 4% 12.5%
Vat input @ 1%, 4% 12.5%
Sale @ 1%, 4% 12.5%
Vat output @ 1%, 4% 12.5%
Vat payable under current liabilities.
Sundry Creditor, Sundry debtors.
Bank A/c.
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56. Accounting Voucher for VAT
• For Purchase Entry with 4% VAT:• PURCHASE A/C ---------DR. 5000/• VAT INPUT A/C-----------DR. 200/TO PARTY NAME A/C.
5200/Niraj Choudhary.
57. • SALE ENTRY
• For Sale Entry with 4% VAT:• PARTY A/C ---------------DR. 8320/TO SALE A/C
8000/TO VAT OUTPUT A/C.
320/Niraj Choudhary.
59. Payment Tax to Govt.
• VAT PAYABLE A/C--------DR. 120/TO BANK A/C.
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120/-
60. TDS (Tax deduction at Source)
•
•
•
•
•
Tax Deduction At Source (TDS)
Nothing is as tangled and knotty as the TDS provisons. While some TDS rates are
specified in the individual section which deal with the tax treatment of the particular
stream of income, some rates are included as part of a separate schedule. To make
matters worse, these rates get tampered and modified every year. This result in so
much chaos and confusion, that sometimes those who have to apply TDS, do not
have a clue about what rate to use. Imagine the plight of tax payer.
The genasis of the problem lies in the complicated nature of the tax laws. The
authorities complain that less than 2% of our population actually pays taxes.
However, simpliflying the provisions is not viewed as a possible solution. On the
other hand, in an effort to bring more and more people into the tax net, the
lawmakers simply endup complicating the law. And the rule is simple more the
complexity more the room.
TDS is final tax payable- at the time of filling his returns, the assessee pays the
balance if any or asks for refund, as the case maybe. Ergo, it behooves the
Department to have a standard uniform rate -convenient both for itself as well as
the taxpayers.
The most unfortunate part is that we could have easily done away with any TDS
provided the deparrtment had good infrastructure to apprehend assessees avoiding
tax only through TDS.
61. TDS ARE CHARGE ON
• 1) CORPORATE BUSINESS
• 2) NON-CORPORATE
BUSINESS
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62. HOW TO ENABLE TDS
• GATEWAY OF TALLY-F11F3- (YES ENABLE TAX
DEDUCTION AT SOURCE &
(YES- SET/ALTER TDS
DETAILS) AND FILL THE
FORM.
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63. STEP-1
• Create the following Ledger.
• 1) M/S Digitech Technology (Under -sundry
creditors.).
• TDS APPLICABLE – YES.
• Section No-197.
• TDS Lower Rate – 4%
• Ignore sur-charge- Yes.
• Salary or Expenses- Under Indirect Expenses.
• TDS ON EXPENSES. – Duties & Tax.
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64. STEP - 2
• Pass the entry in Journal for Showing the
EXPENSES DUE.
• SALARY A/C……………DR.
5000/TO PARY A/C…………………
5000/(TYPE OF REF.- NEW REF.)
TDS LEDGER - TDS ON EXPENSE LEDGER.
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65. Tally - Books of Accounts
REPORTS
•
•
•
•
•
Profit & loss statement
Balance sheet
Cash flow statement
Fund flow statement
Ratio analysis
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67. IMPORTING DATA
Import of data from one company to
another created within tally happens
seamlessly
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68. PAYROLL
•
IN TALLY 9.0
In a company, payroll is the sum of all financial records of
salaries for an employee, wages, bonuses and deductions. In
accounting, payroll refers to the amount paid to employees for
services they provided during a certain period of time. Payroll plays a
major role in a company for several reasons. From an accounting point
of view, payroll is crucial because payroll and payroll taxes
considerably affect the net income of most companies and they are
subject to laws and regulations (e.g. in the U.S. payroll is subject to
federal and state regulations). From ethics in business viewpoint
payroll is a critical department as employees are responsive to payroll
errors and irregularities: good employee morale requires payroll to be
paid timely and accurately. The primary mission of the payroll
department is to ensure that all employees are paid accurately and
timely with the correct withholdings and deductions, and to ensure the
withholdings and deductions are remitted in a timely manner. This
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includes salary payments, tax withholdings, and deductions from a
paycheck.
69. Process to Maintain
Payroll
• At first create company.
After than enable to Payroll option.
PressF11-Maintain Payroll
Yes
Maintain cost categories.
Yes
More than one payroll cost center Yes
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70. PAYROLL STEPS
• STEP 1- Create Unit (Work).
• STEP 2- Create attendance type (OVERTIME,
SICK LEAVE, ABSENT).
• STEP 3- Create Pay heads.
» (BASIC, HRA, TA / CONVEYANCE,
MEDICAL ALLOWANCE, PROVIDENT
FUND, FOOD COOPAN, PROFESSIONAL
TAX ETC.)
» ESI- UNDER STATUTARY DEDUCTION.
» GRATUITY- UNDER GRADUITY.
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79. Create Salary Details for Employee.
GT-Payroll Info.Salary Details. Then
a popup menu will come which time
select Copy From Parent Value
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